Embodiments of the present invention are directed to systems, apparatuses and methods for performing payment transactions, and more specifically, to a system and associated apparatus and method for performing payment transactions using a payment device that includes a contactless element (such as an integrated circuit chip embedded in a wireless mobile device) by interacting with a device reader or point of sale terminal using a pre-tap or two-tap process, either individually or in combination. Embodiments of the invention may be used to conduct payment transactions, perform Issuer updates of data stored in a payment device, or enable the configuration of payment device functions or operations, among other possible uses.
Consumer payment devices are used by millions of people worldwide to facilitate various types of commercial transactions. In a typical transaction involving the purchase of a product or service at a merchant location, the payment device is presented at a point of sale terminal (“POS terminal”) located at a merchant's place of business. The POS terminal may be a card reader or similar device that is capable of accessing data stored on the payment device, where this data may include identification or authentication data, for example. Data read from the payment device is provided to the merchant's transaction processing system and then to the Acquirer, which is typically a bank or other institution that manages the merchant's account. The data provided to the Acquirer may then be provided to a payment processing network that is in communication with data processors that process the transaction data to determine if the transaction should be authorized by the network, and assist in the clearance and account settlement functions for completed transactions. The authorization decision and clearance and settlement portions of the transaction may also involve communication and/or data transfer between the payment processing network and the bank or institution that issued the payment device to the consumer (known as the Issuer).
Although a consumer payment device may be a credit card or debit card, it may also take the form of a “smart” card or chip. A smart card is generally defined as a pocket-sized card (or other form of portable payment device) that is embedded with a microprocessor and one or more memory chips, or is embedded with one or more memory chips with non-programmable logic. The microprocessor type card typically can implement certain data processing functions, such as to add, delete, or otherwise manipulate information stored in a memory location on the card. In contrast, the memory chip type card (for example, a prepaid phone card) can typically only act as a file to hold data that is manipulated by a card reading device to perform a pre-defined operation, such as debiting a charge from a pre-established balance stored in the memory. Smart cards, unlike magnetic stripe cards (such as standard credit cards), can implement a variety of functions and contain a variety of types of information on the card. Therefore, in some applications they may not require access to a remote database for the purpose of authenticating a consumer or creating a record at the time of a transaction. A smart chip is a semiconductor device that is capable of performing most, if not all, of the functions of a smart card, but may be embedded in another device.
Smart cards or chips come in two general varieties; the contact type and the contactless type. A contact type smart card or chip is one that includes a physical element (e.g., a magnetic stripe, contact pad, etc.) that enables access to the data and functional capabilities of the card, typically via some form of terminal or card reader. In contrast, a contactless smart card or chip is a device that incorporates a means of communicating with a card reader or point of sale terminal without the need for direct physical contact. Thus, such devices may effectively be “swiped” (i.e., enabled to be read by, or otherwise exchange data with another device) by passing them close to a card reader or terminal. Contactless cards or chips typically communicate with a device reader or terminal using RF (radio-frequency) technology, wherein proximity to the reader or terminal enables data transfer between the card or chip and the reader or terminal. Contactless cards have found uses in banking and other applications, where they have the advantage of not requiring removal from a user's wallet or pocket in order to participate in a transaction. A contactless card or chip may be embedded in, or otherwise incorporated into, a mobile device such as a mobile phone or personal digital assistant (PDA). Further, because of the growing interest in such cards, standards have been developed that govern the operation and interfaces for contactless smart cards, such as the ISO 14443 standard.
In a typical payment transaction, data is sent from a point of sale terminal to the Issuer to authenticate a consumer and obtain authorization for the transaction. As part of the authentication or authorization processes, the data may be accessed or processed by other elements of the transaction processing system (e.g., the merchant's Acquirer or a payment processor that is part of a payment processing network). Note that in some cases, authorization for the transaction may be obtained without connecting to the Issuer; this may be permitted by Issuer configured risk management parameters that have been set on the consumer's payment application or payment device. If the proposed transaction is authorized, then the consumer may provide other information to the merchant as part of completing the transaction. The Issuer or data processor may also send data back to the consumer. Such data may include an update to records of the transactions for which the payment device has been used, or to a current balance of an account associated with the device.
An Issuer or payment processor may also desire to configure (or re-configure) a function, operation, or setting of a payment application that is installed on a payment device, such as a mobile device that includes a contactless element. Such an action may include resetting a counter to enable or disable a function, configuring a function or capability of the payment application or payment device, or initiating the execution of a script or application that operates on the payment application, payment device, or transaction data, for example.
An issue for any payment transaction system or process is ease of use by a consumer, as this leads to increased adoption by the consumer and usage of the system, thereby generating more revenue for Merchants and the entities involved in authorizing and processing payment transactions. A consumer typically desires that a transaction be executed with a minimum amount of delay and with minimal burden being placed on the consumer. In addition, if required for a transaction, a consumer desires to be able to locate and activate a payment application on a payment device with relatively little effort in order to initiate the transaction. The concern for minimizing the burden on a consumer is at least partly the result of recognizing that a consumer typically does not want to be inconvenienced by difficulties in attempting to activate a payment application or by having to wait additional time while the transaction processing system carries out data processing or other functions. Thus, in order to satisfy the desires and expectations of consumers, most payment transaction processing systems are designed to require minimal interaction on the part of consumers.
For example, in the case of a transaction that uses a contactless element, a device reader or point of sale terminal is typically expected to be in communication with the contactless element for only a short period of time; for example, enough time for it to be recognized by the reader and to provide data needed to initiate or conduct a portion of the transaction. However, this means that the consumer payment device and device reader or point of sale terminal may not be in communication long enough for an Issuer or payment processor to process the transaction data and provide the processed data to the device reader for transfer to the consumer device. It may also mean that the payment device and device reader or terminal are not in communication when the Issuer or payment processor desires to perform an update to cause a command or function to be executed on the payment device, such as for resetting a counter, configuring a function of the payment application or payment device, etc.
Another issue for a payment transaction system or process in which data or a configuration command or instruction is provided by an Issuer or payment processor involves ensuring that the received data, command, or instruction is from an authorized party, and that the payment device properly associates the received information with the transaction or application to which the information applies.
What is desired is a system, apparatus and method for enabling an Issuer or payment processor to provide a consumer payment device containing a contactless element with transaction data or to initiate an update process, without requiring that a consumer maintain communication between the payment device and a device reader or terminal for an extended period of time. It is also desired to have a system, apparatus and method for enabling the automatic launch of a payment application when a payment device is presented to a device reader or point of sale terminal, where this may include a determination of whether consumer interaction is required before a transaction can be completed. Embodiments of the invention address these problems and other problems individually and collectively.